Payroll represents the list of employees to which the company pays wages, including these due amounts. Moreover, the employer is required to withhold tax on the salaries of its employees, as well as pay the apprenticeship levy. In addition to this, the company will also make national insurance contributions.
Businesses such as LLCs and other types of corporations can request payroll services in UK from a third-party provider, such as our experts, in order to make sure that they fully comply with the payments in force. Our team also provides dedicated services to companies that hire employees and can assist with much more than information about the mandatory taxes paid by the employer.
Our lawyers in UK specialize in all corporate and business matters, including all the relevant aspects of labour law. If you wish to know more about this topic, you can discuss them further with one of our solicitors.
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Services offered by a payroll provider in UK
Locally registered companies, as well as branches of foreign businesses operating in the United Kingdom commonly request the services offered by a dedicated payroll provider. This means that payroll (the complete management of the salary payments made to the employees, as well as the due taxes to the UK authorities) will be entrusted to a dedicated third party that specialises in these types of matters.
We refer to payroll in UK as the practice of handling all the due payments to the employee (in terms of remuneration), as well as those due to the authorities (in terms of social security contributions and other types of payments directly related to having had employed staff to work for the company).
Payroll services in the UK are often requested by companies and will commonly include the following:
- Salary calculations: make the needed salary and tax deductions, as well as calculate any bonuses, according to the conditions that apply to the employee on a monthly basis;
- Electronic payslips: the traditional paper payslip presented in electronic form, to access as needed;
- Payments to the employees: making sure that the employees are paid on time, in a secure and efficient manner;
- Making the necessary payments: tax withholding under the Pay As You Earn system (PAYE), as well as the National Insurance Contribution.
Working with a payroll provider in the UK means that the employer will have the peace of mind that the salaries are paid accordingly and the PAYE rules and the HMRC laws are fully observed.
There is no tax on payroll in UK, however, both the employer and the employee make social security contributions, although this takes place in different percentages. The employer deducts these contributions from the employees’ pay at different rates according to the monthly wage. The rates issued on April 2023 are valid thru 5 April 2024, as per the National Insurance rates and categories, and can be explained by our lawyer in London.
If you would like to know more about the employer’s duties and obligations, please contact our law firm in London. We offer complete support in many areas of law, and we also focus on representing employers in many different issues concerning the UK labour law.
Employment statistics in the UK
The Office for National Statistics offers important information about the employment and labour market in its regular publications. Our team summarizes some of the available data below:
- the UK employment rate was estimated at 75.9% in January-March 2022 (for employees aged 16 to 64); this is 0.2 percentage points higher than in October-December 2022;
- the median weekly pay in the case of full-time employees was £640 in April 2022, marking an increase of 5% compared to the same month in 2021 (when it had a value of £610);
- the workplace pension participation rate in the UK in April 2021 was 79%, an increase from 78% in 2020 (partly explained by the employment increase in the public sector as a response to the coronavirus pandemic).
Reach out to us as soon as you are in need of payroll services in UK. We can give you more details about the employee’s National Insurance category letter, as well as additional information about sick pay and other matters.
We also assist investors and companies with other matters, in addition to those related to payroll in UK. Contact our lawyers in London for complete information about our legal services.
